By CNN's Jeremy Herb, Lauren del Valle and Brynn Gingras from the courthouse
Pecker testifies that National Enquirer Dylan Howard gave his updates as the negotiations to purchase Karen McDougal's story were happening.
Laying out the terms of the agreement, Pecker says they would purchase the lifetime rights for $150,000. McDougal wanted to restart her career, writing articles and being an anchor for Radar Magazine for red carpet events.
Steinglass is asking Pecker how he felt about Cohen's assertion that Trump would reimburse him.
"Over the years that I know, that I worked with Michael Cohen, I know he didn’t have any authorization to spend or to disperse any funds from Trump Organization," Pecker says.
Pecker said he was authorized to move forward with former National Enquirer editor Dylan Howard, who would negotiate the terms, but at this point they hadn't discussed the purchase price for the Karen McDougal story yet.
He says every time he and Cohen would go for lunch, he paid, not Cohen.
Trump confers with his attorneys as Pecker is testifying to these details, at times shutting his eyes as he listens.
Pecker instructed Dylan Howard to negotiate the terms after Cohen called him to tell him to buy the story.
Cohen said to him: "Don't worry. Im your friend. The boss will take care of it."
He understood that would mean he would be reimbursed by Trump Org or Trump himself.
Earlier Pecker said that Cohen referred to Trump as "the boss."
Steinglass is asking Pecker why he told Trump they should buy the story. "I believed the story was true," he says.
Pecker recalls Cohen told him about paying for the story, saying, "The boss will take care of it."
Steinglass asks Pecker to clarify who "the boss" was? "Donald Trump," he says.
Pecker is now describing receiving a call from Trump while he was at an investors meeting in New Jersey.
Pecker says of the phone call: "When I got on the phone, Mr. Trump said to me, 'I spoke to Michael. Karen is a nice girl. Is it true that a Mexican group is looking to buy the story for $8 million?'"
According to Pecker, Trump said, "What do you think I should do?"
Pecker testified that he said, "I think you should buy the story and take it off the market"
“I believe that when Mr. Trump said that ‘She was a nice girl,’ I believe that he knew who she was," Pecker said.
He felt it'd be "very embarrassing" for Trump and for the campaign, Pecker said.
David Pecker says Karen McDougal's attorney Keith Davidson was one of Dylan Howard's key sources, and that went into the thinking of why they needed to buy the story.
Remember: Davidson also repped Stormy Daniels in her NDA negotiation with Cohen.
Several of the jurors are taking notes as Pecker testifies. They are turning their heads between Steinglass and Pecker as they each speak.
Pecker is testifying that Karen McDougal didn't want the story to be published.
"She said that she didn't want to be the next Monica Lewinsky. She wanted to restart her career," Pecker says.
